Vietnam Strategy Update - Look beyond lockdown

Vietnam’s ‘fourth wave’ of COVID-19 and the associated restrictions on activity implemented to stem the spread of the virus have escalated rapidly over the past few weeks. As a result, the operational challenges for businesses and financial consequences, including potential revenue impairment and elevated costs, are likely to prove more significant in the short term. Potential downside risk to our below consensus 2021 GDP growth forecast of 5.5% has also increased. However, we believe the market has already discounted a substantial hit to Q3 2021 earnings for impacted stocks and Q3 GDP and that investors should look beyond the current lockdown.  

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